Local Market Update - July 2017

Despite some concerns of a downturn after May’s figures were released, the Melbourne property market still has some momentum in it with an increase of almost $30,000 or 3.5% over the June quarter.

Melbourne house prices have risen consecutively for more than 4½ years, jumping $100,000 or 15% in the last year and now sitting at a record $865,712.

Locally, that very popular price range up to $1.8M is over crowded with buyers. It feels like everyone is after the same properties with multiple bidders, amazing results and the inevitable majority walking away disappointed. In this market my advice to buyers is: if it ticks most of the boxes, then go for it.

So, whilst we may be heading toward the tail end of the house price boom and, overall, I anticipate minimal growth over the winter and into spring when there are typically more houses hitting the market, vendors that have properties in that magic price bracket will do exceptionally well right through to the end of the year.

The growth is unlikely to continue at the same pace into next year, but locally it should remain steady due to an under-supply. I punched some numbers on Beaumaris sales over the past 4 years and we have been fairly consistent hovering around 300 sales per year until this financial year when there were only 219 sales – quite a drop!

Locally, there were 15 sales in Beaumaris for July – on par with June. However there are 22 properties currently on the market which is considerably down on the 30 last month. There were only 6 sales in Black Rock for July - half that of June but understandable given there were only 12 properties on the market. Currently there are 22 properties on the market way - back up to May figures and up from the crazy low of 12 last month.

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